Ken O'Flynn (Cork North-Central, Independent Ireland Party)
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171. To ask the Minister for Finance if he will confirm whether Budget 2025, as presented, complies with the national and EU fiscal rules, including the expenditure benchmark and structural balance requirements; if he will provide his Department's own assessment of compliance; and if he will make a statement on the matter. [67753/25]

Simon Harris (Wicklow, Fine Gael)
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The European Commission presented their opinions on Member States’ budgetary plans as part of the 2026 European Semester Autumn Package published on November 25th. The opinions provide the Commission’s evaluation of how Member States’ budgets align with the EU fiscal framework.

Overall, the Commission assessed that Ireland’s budgetary plan complies with the obligations of the Stability and Growth Pact (the EU fiscal framework) as the budgetary position for 2026 is projected to be in surplus, thus contributing to a reduction in the public debt ratio.

Since the revision of the EU fiscal rules in 2024, net expenditure growth has become the main operational indicator of compliance with the European fiscal framework, replacing the medium-term objective (i.e. structural balance requirements). Net Expenditure paths are set out in each Member States Medium-term Fiscal and Structural Plan (MTP).

Ireland’s first MTP was published in October 2024. Given the political cycle, October's Plan was prepared on the basis of pre-existing policies, with technical assumptions for expenditure growth over 2026-2030 in line with those contained in Budget 2025.

In line with EU regulations that allow for new MTPs to be submitted to European authorities following a change of government, the Government has confirmed its intention to publish a new MTP. In this context, I am working with the Taoiseach and Minister Chambers to finalise our Medium-Term Fiscal and Structural Plan, which I intend to publish shortly.

The plan, which will set out the fiscal strategy to 2030, will support progress on implementing the key social and economic priorities of Government - as set out in the Programme for Government - while delivering on our commitment to sustainable public finances.